Driving is something we take for granted, yet it’s one of the most regulated activities an average person takes part in. Automotive accidents rarely result in damage that is cheap to fix. One way to protect yourself is to get car insurance. Here are some of the most common reasons why your car needs an insurance policy.
Insurance Will Cover Damages to Your Car
Car insurance simply makes sense. Traffic is unpredictable. No matter how safe of a driver you are, you can’t control the behavior of other motorists around you. There will be instances where you’ll do everything by the book and still find yourself in a risky situation simply because someone else wasn’t paying attention.
In no-fault states, it doesn’t matter who was right or wrong. Each party involved has to seek compensation for any damages or medical bills from their own insurance company. In other words, not having insurance in such instances means that you’ll have to cover everything out of pocket.
It’s the Law
By far the most common reason why you need an insurance policy for your car is the fact that it is the law of many states within the country. Different jurisdictions may have different rules regarding the type of insurance that you need to have, and the type of liability it covers, but most states will require you to have at least some kind of insurance on your vehicle.
In fact, only two states of the union, New Hampshire and Virginia, allow you to operate a motor vehicle without having it insured. Some states go a step further, requiring some drivers to have an SR-22 policy on top of their existing documentation. This document is usually required for those who have been involved in numerous accidents in the past, was caught driving under the influence, or similar infractions.
Protection from Uninsured Drivers
Every driver’s worst nightmare is being involved in an accident with an uninsured driver. In many such cases, if not all of them, the person that doesn’t have insurance isn’t solvent enough to pay for the damages done to your vehicle, or worse to your body. More often than not, having a basic insurance plan won’t protect you from such drivers.
What you’ll need in this instance is uninsured driver protection, which comes as an add-on feature to your existing insurance policy. Does it increase your overall premium? Sure, but not by much. That being said, having the protection this feature brings to the table is invaluable in case you ever need it. It’s much better to pay a slightly higher premium than to deal with a totaled vehicle and a court case that will end up nowhere.
It’s Not Just for You
What most car owners tend to forget is that their insurance policies aren’t covering the driver only. They also cover any passengers you have in your car at the moment of the accident. In case your passengers get injured while riding with you, your insurance will be there to cover any of their medical bills, or at least most of them depending on what insurance plan you purchased.
In a way, having car insurance shows that you care about your property, your own health, but also the health and wellbeing of your closest friends and family.
Your Bank or Leasing Company Will Most Likely Require Insurance
If you’ve leased a car, there is a very high chance that your bank or leasing house will require you to purchase a car insurance policy. This is only normal seeing that you are not effectively the owner of the vehicle, and that leasing houses need to protect their investment.
That being said, it’s important that you check with your lender or leasing house to see what kind of insurance policy you have to take out on a leased vehicle. Some leasing houses and banks will ask you to buy a comprehensive insurance policy.
A Good Insurance Provider Goes a Long Way
At the end of the day, it’s obvious that being a car owner means that you should also have an insurance policy on your car. It’s the smart thing to do, and in most cases, a necessary thing to have in order to stay legal. That being said, it’s also important that you find the right insurance provider. Shop around and find a company that understands your needs and offers the right kind of plans.
Even having an inexpensive car insurance shows that you care about your property, your own health, but also the health and wellbeing of your closest friends and family.
Insurance Outsourcing Solutions for Agencies
If you own an insurance agency, managing claims, policy checking, creating new quotes for car insurance, and other administrative tasks can be quite overwhelming. This is where many agency owners find insurance agency outsourcing solutions helpful. By outsourcing back-office tasks to an insurance outsourcing company, your agency can streamline operations, focus on core business activities, and improve overall efficiency. Whether you need help with certificate issuance or proposals for new car insurance, partnering with the right outsourcing provider can make all the difference.
